In this article, we will discuss the 10 Best Debt-Free IT Stocks to Buy Now.
Information technology stocks are trading near historic highs, driven by the artificial intelligence (AI) trade and hardware demand. The S&P 500’s Info Tech sector surged roughly 16% in the spring, commanding a record 37% of the S&P 500’s total market capitalization.
The rally has been driven by advances in AI models, wowing software engineers and convincing companies and investors that the technology will be useful and transformative.
“The AI train is moving forward,” said Joe Tanious, chief investment strategist for North America at Northern Trust Asset Management. “You don’t necessarily want to try to stop it or sit on the sidelines.”
According to Gradient Investments senior portfolio manager Keith Gangl, security software remains a top priority for IT departments regardless of the macro backdrop. Consequently, he believes there is a rare opportunity to buy a high-quality name “that’s on sale compared to where it normally trades.
Concerns about whether information technology companies could turn their enormous spending on AI into big profits have eased significantly. Strong corporate earnings and upbeat forecasts for the year are already affirming the underlying robust growth amid the massive spending.
“We are squarely in the acceleration phase of the AI era,” said Kevin Shea, senior equity strategist at BNY Wealth. “You take a look at the revenue growth from some of these large language models, it’s faster than anything we’ve seen before.”
While the biggest threat to information technology stocks’ rally could be inflation, let’s take a look at some of the best debt-free IT stocks to buy now, likely to shrug off any headwinds owing to their impressive track records and performance.
Our Methodology
We used the Finviz stock screener to identify S&P 500 stocks with enterprise value (EV) below their market capitalization. An EV-to-market-cap ratio of 1.0 or below typically indicates that a company has little to no debt. We then limited our final selection to stocks that have recently reported noteworthy developments likely to influence investor sentiment. These stocks are also popular among analysts and elite hedge funds in Q1 2026. Finally, we ranked the stocks in descending order based on their EV-to-Market ratio.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Best Debt-Free IT Stocks to Buy Now
10. Accenture Plc (NYSE:ACN)
EV-to-Market Cap Ratio: 0.99
Stock Upside Potential: 40.46%
Number of Hedge Fund Holders: 64
Accenture Plc (NYSE:ACN) is one of the best debt-free IT stocks to buy now. On June 1, Truist Securities downgraded Accenture Plc to a Hold with a $210 price target. The downgrade came amid concerns the company could struggle amid constrained budgets in the sector.
In addition, Truist Securities remains wary of competition from new artificial intelligence plays. Artificial intelligence solutions are increasingly eating into the company’s core segments, resulting in revenue cannibalization. Consequently, there are concerns that the company could struggle amid headcount-based pricing models.
Nevertheless, the research firm also insists that the company is well-positioned to reshape its business model as it continues to expand its AI capabilities. The push is part of an effort to keep up with AI innovation and to shrug off potential disruptions.
For starters, it has inked a strategic collaboration with Mitsubishi Chemical Corporation to create an AI-powered platform for corporate operations. It has also partnered with HUMAIN to scale AI integration across sectors in Saudi Arabia.
Accenture Plc is a global professional services and technology consulting firm that helps organizations build, secure, and manage their digital infrastructure. It operates as an end-to-end IT provider, guiding companies from initial IT strategy and cloud migration to software engineering, artificial intelligence (AI) integration.
9. Cognizant Technology Solutions Corp (NASDAQ:CTSH)
EV-to-Market Cap Ratio: 0.98
Stock Upside Potential: 35.76%
Number of Hedge Fund Holders: 50
Cognizant Technology Solutions Corp (NASDAQ:CTSH) is one of the best debt-free IT stocks to buy now. On June 1, Cognizant Technology Solutions Corp announced plans to bridge the gap between AI capabilities and enterprise implementation. The company launched Frontier Certified Engineer and Frontier Business Operator job categories.
Focusing on artificial intelligence work, the two new job categories are part of the company’s workforce strategy to pursue a $4.5 trillion opportunity in labor value. Frontier Certified Engineers specialize in helping organizations identify where AI can be applied to their business operations.
Cognizant is to leverage its proprietary training platform, Skill Spring, to develop talent that can manage a blended workforce of human and digital labor. The development of the two roles underscores Cognizant’s commitment to building human and operational infrastructure enterprises needed to make AI work at scale.
The company is looking to capitalize on the trend as organizations across sectors seek to turn AI investments into bottom-line results. Cognizant will benefit from investing in a talent model that enables the AI transition and makes it profitable.
Cognizant Technology Solutions Corp is a global IT consulting and services company that helps businesses modernize their technology, automate processes, and build enterprise-grade Artificial Intelligence (AI) solutions. They act as a digital transformation partner, providing full-cycle software development, cloud migration, and tech infrastructure management.
8. Parsons Corporation (NYSE:PSN)
EV-to-Market Cap Ratio: 0.98
Stock Upside Potential: 14.40%
Number of Hedge Fund Holders: 35
Parsons Corporation (NYSE:PSN) is one of the best debt-free IT stocks to buy now. On June 6, Parsons Corporation inked a $99 million task order from the US Air Force Research Laboratory. The task order paves the way for the company to provide research, development, engineering, and demonstration of command-and-control technologies.
The award also includes a five-year, plus two-month, performance period, expected to enhance the company’s edge in the provision of advanced software solutions. That’s because the company is to support Global Application Research, Development, Engineering, and Maintenance 2 (GARDEM 2) Command and Control, Space and Intelligence, Surveillance & Reconnaissance (C2-SpISR) software baselines.
The $99 million contract underscores Parsons Edge’s in the delivery of next-generation software baselines and prototypes that can support the Department of War and the intelligence community. The company has carved a niche in delivering mission-ready capabilities at the speed of relevance. It has already supported the US Air Force on full-spectrum cyber operations, network modernizations, and edge computing, among others.
Parsons Corporation operates as a technology and engineering firm that provides software and hardware solutions at the intersection of national security and critical infrastructure. In the IT space, they specialize in cybersecurity, C5ISR (Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance, and Reconnaissance), space and geospatial intelligence, and smart city software.
7. Innodata Inc. (NASDAQ:INOD)
EV-to-Market Cap Ratio: 0.97
Stock Upside Potential: -7.41%
Number of Hedge Fund Holders: 20
Innodata Inc. (NASDAQ:INOD) is one of the best debt-free IT stocks to buy now. On May 7, Innodata Inc. posted another record-setting first-quarter results, characterized by robust revenue growth, affirming that its strategic positioning is increasingly translating into scale-driven margin expansion and cash generation.
Revenue in the quarter was up 54% year over year to $90.1 million, while Adjusted EBITDA nearly doubled to $25 million, up from $12.7 million for the same period last year. Net income in the quarter totaled $14.9 million, or $0.46 a share, nearly double the $7.8 million, or $0.25 a share, delivered in the same quarter last year.
Following the impressive first quarter, Innodata has raised its full-year 2026 revenue growth guidance to about 40% from the previous expected growth of 35%. The revenue growth would come on the back of engagements with some of the world’s leading big tech companies, expected to generate $51 million in revenue.
In addition, Innodata continues to innovate at a rapid pace, having launched the Evaluation and Observability Platform in beta.
Innodata Inc. is a global data engineering company that builds, trains, and evaluates artificial intelligence systems. Operating at the core of IT, they provide the essential “picks and shovels” needed to make Large Language Models (LLMs) and Agentic AI work factually, safely, and accurately for major technology and enterprise clients.
6. Infosys Limited (NYSE:INFY)
EV-to-Market Cap Ratio: 0.94
Stock Upside Potential: 14.19%
Number of Hedge Fund Holders: 31
Infosys Limited (NYSE:INFY) is one of the best debt-free IT stocks to buy now. On June 2, Infosys Limited confirmed the expansion of its strategic collaboration with Norway’s largest bank, DNB Bank ASA. As part of the expanded partnerships, the bank is to leverage the company’s NICE Actimize X-Sight Enterprise platform to modernize its Financial Crime operations.
Consequently, Infosys is to implement a secure, scalable system that supports seamless data integration, advanced analytics, and intelligent automation. It will also integrate X-Sight’s key solutions for anti-money laundering and fraud to enhance DNB’s customer risk visibility.
In addition, Infosys is to help DNB transform fragmented legacy systems into an intelligence-driven, cloud-native platform. The ultimate goal is to enhance risk insights, improve detection accuracy, and enhance regulatory compliance. The integration will result in the end-to-end modernization of the bank’s FinCrime technology landscape. The bank will also be able to detect earlier, investigate more effectively, and respond with greater consistency.
Infosys Limited is a global technology services and consulting company that helps businesses digitally transform their operations. It provides a wide range of services, including custom software development, artificial intelligence (AI) solutions, cloud computing, and IT outsourcing.
5. WidePoint Corporation (NYSEAMERICAN:WYY)
EV-to-Market Cap Ratio: 0.94
Stock Upside Potential: 3.45%
Number of Hedge Fund Holders: 3
WidePoint Corporation (NYSEAMERICAN:WYY) is one of the best debt-free IT stocks to buy now. On May 14, WidePoint Corporation delivered solid first-quarter results, driven by year-over-year revenue growth at the back of cost management efforts. The company also achieved positive earnings per share despite an extended period of uncertainty at DHS.
Revenue in the quarter increased by $7.1 million to $40.6 million, while gross margin was 14%. The company also bounced back to profitability, reporting net income of $77,000, or $0.01 a share, compared to a net loss of $724,000, or $0.08 a share, posted in the same quarter last year. Widepoint also achieved its 35th consecutive quarter of positive EBITDA of $752,000, representing a 714% year-over-year increase.
Free cash flow was up 941% to $674,000, marking a 10th consecutive quarter of positive returns. While the government shutdown did affect the company in the first quarter, a majority of DHS agencies have received funding and budget momentum, acting as a meaningful tailwind. The company has already received a contract modification to June 24, as it continues to advance the carrier SaaS contract through implementation and functionality testing.
WidePoint Corporation (NYSE:NYSEAMERICAN) is an IT Managed Services Provider (MSP) that secures mobile workforces and enterprise infrastructures. They specialize in Identity and Access Management (IAM), Trusted Mobility Management (TM2), and Telecom Lifecycle Management. Their cloud-based platforms allow federal agencies and enterprises to control, secure, and audit their mobile ecosystems.
4. Wipro Limited (NYSE:WIT)
EV-to-Market Cap Ratio: 0.84
Stock Upside Potential: 1.03%
Number of Hedge Fund Holders: 14
Wipro Limited (NYSE:WIT) is one of the best debt-free IT stocks to buy now. On May 22, Wipro Limited shareholders approved a buyback of up to 600 million fully paid-up equity shares of ₹2 each, representing 5.72% of the company’s share capital.
The buyback is to be executed at ₹250 per share to a maximum of ₹150 billion (₹15,000 crore). The buyback program comes on the heels of CEO Srini Pallia reiterating that advancements in AI are creating new opportunities, allowing the company to partner more deeply and deliver value-driven outcomes. Consequently, the company’s cash conversion remains strong with operating cash flows at 112.6% of net income for FY 26.
Revenue in the quarter ended March 31 was up 7.7% year over year to ₹242.4 billion ($2,583.0 million). IT services revenue increased 2.1% to $2,651.0 million. Net income increased 12.3% quarter over quarter to $373.2 million, while earnings per share came in at $0.04.
Wipro Limited is a leading global technology services, consulting, and business process outsourcing (BPO) company. It helps enterprises worldwide transform digitally by modernizing IT operations, adopting artificial intelligence (AI), and streamlining supply chains.
3. Pony AI Inc. (NASDAQ: PONY)
EV-to-Market Cap Ratio: 0.76
Stock Upside Potential: 92.09%
Number of Hedge Fund Holders: 23
Pony AI Inc. (NASDAQ:PONY) is one of the best debt-free IT stocks to buy now. On May 26, the company delivered solid first-quarter results as it continues to scale its commercial operations, supported by a scaled fleet, technological capabilities, and operational capabilities.
Revenue in the quarter was up 145% year over year to $34.25 million, driven by growth in Robotaxi services and intelligence solutions revenue. Service revenues increased 61.4% to $16.7 million, driven by Robotaxi and Robotruck transportation services. Product revenues were up 384.4% to $17.5 million.
On the other hand, the company posted a wider-than-expected non-GAAP net loss of $41.2 million, compared with $23.8 million in the first quarter of last year. The wider-than-expected net loss was due to non-operating items reflecting a decrease in investment income.
As Pony AI continues to scale its operations, it has raised its 2026 targets and now expects to end the year with a Robotaxi fleet of more than 3,500 vehicles deployed in over 20 cities. It also expects its full-year revenue to exceed 3.5 times last year’s level.
Pony AI Inc. develops full-stack autonomous driving technology and artificial intelligence systems for vehicles. They are a global leader in operating commercial robotaxis and robotrucks, as well as in providing self-driving software/hardware solutions to major automakers and mobility networks.
2. Grid Dynamics Holdings Inc. (NASDAQ:GDYN)
EV-to-Market Cap Ratio: 0.52
Stock Upside Potential: 27.84%
Number of Hedge Fund Holders: 23
Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is one of the best debt-free IT stocks to buy now. On May 26, Grid Dynamics Holdings, Inc. moved to target large enterprises running mission-critical, high-transaction-volume legacy environments. The company unveiled an AI-native modernization service powered by its GAIN Platform for SDLC on Microsoft Azure.
The offering will help large enterprises tackle the biggest roadblocks pertaining to technical debt and legacy licensing costs. Integration with Microsoft Azure is part of an effort to help the company’s clients benefit from free Microsoft assistance, Azure credits, and funding for migration assessments.
Grid Dynamics is to extend its AI delivery model to Azure while drawing on extensive expertise in application migration. The program can also accelerate project delivery by over 30%. The company also stands to enable mission-critical systems to be fundamentally transformed and modernized, unlocking massive innovation.
The unveiling of the AI modernization service comes on the heels of AI representing 29% of revenue in the first quarter, up from 25% in 2025.
Grid Dynamics Holdings Inc. is an enterprise technology consulting and digital engineering firm that helps Fortune 1000 companies modernize their IT systems, build scalable cloud platforms, and develop AI-powered products. They specialize in high-complexity digital transformation, software design, and engineering.
1. Wise Group PLC (NASDAQ:WSE)
EV-to-Market Cap Ratio: -0.62
Stock Upside Potential: 18.39%
Number of Hedge Fund Holders: N/A
Wise Group PLC (NASDAQ:WSE) is one of the best debt-free IT stocks to buy now. On June 1, Wise Group PLC announced it had responded to queries about its business operations following an inquiry by the Brussels prosecutor’s office.
The company insists the prosecutor’s office has yet to share specific findings and that the inquiry remains incomplete. On the other hand, The Guardian reports the company is answering questions from prosecutors investigating potential money laundering claims. The report further claims authorities are investigating whether the company’s accounts were used to launder proceeds of fraud, corruption, and drug trafficking.
On May 11, William Blair maintained an Outperform rating on Wise Group Plc, impressed by the company’s edge in cross-border payments. According to the research firm, the company has invested over £4 billion to capture the £30 trillion-plus market, strengthening its competitive edge against traditional financial institutions. Its cross-border volume has grown at a 31% compound annual rate from fiscal 2019 to fiscal 2026, reaching £182 billion.
Wise Group PLC is a global technology company that builds infrastructure for international money movement. Its primary IT functions focus on modernizing financial systems, enabling instant cross-border payments, and providing B2B embedded finance solutions
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